Nearly a century since the popular horror movie “King Kong” first hit US theaters, the term “shell company” has become part of the everyday lexicon. However, some people are taking advantage of the connotations that the term has in modern culture, which could have seriously negative consequences for people like James Comer, an advocate for small businesses and entrepreneur.
Recently, Comer took to Twitter to express his dissatisfaction with how some unscrupulous venture capitalist are using the term “shell company” to describe businesses that they purchase or create – often with little intention of improving the company in any meaningful way. In a series of tweets, Comer argued that the term “shell company” belies the hard work that entrepreneurs like himself put into their businesses. He argued that the venture capitalists are attempting to take advantage of the public’s misconception of the term “shell company” by using it to describe their businesses, when really, they should be held to a higher standard and only use the term to describe actual shell companies.
In short, Comer is angry that the hard work of entrepreneurs is being used to give venture capitalists a favorable public perception. He noted that venture capitalists, who generally have a lot of money to invest, have an unfair advantage over small business owners because they can use the term “shell company” to mislead the public. This could lead to the devaluation of the work of true entrepreneurs who are working hard to build and maintain their businesses.
Undoubtedly, Comer has a point. Venture capitalists should tread lightly when they describe their business as a “shell company.” The tern carries a number of negative connotations – one of which is the degradation of the laudable hard work that entrepreneurs go through in order to keep their businesses afloat. It is important for venture capitalists to respect the work of entrepreneurs and not use the term “shell company” to describe their businesses in order to gain a favorable public perception.